Shanghai-London Stock Connect Is Expected to Launch This Year, CSRC Vice-Chairman Says
Liao Shumin
DATE:  Nov 09 2018
/ SOURCE:  Yicai
Shanghai-London Stock Connect Is Expected to Launch This Year, CSRC Vice-Chairman Says Shanghai-London Stock Connect Is Expected to Launch This Year, CSRC Vice-Chairman Says

(Yicai Global) Nov. 9 -- A leading figure from China's top securities regulators has said that the Shanghai-London Stock Connect Program is expected to start this year, adding that the countries firms should be encouraged to develop through overseas markets.

The scheme allows London-listed firms to issue CDRs in Shanghai while Shanghai-listed companies may issue Global Depository Receipts in London, thereby connecting transactions of both markets. Chinese regulators issued rules on the scheme last month while the Shanghai bourse has issued draft business rules.

Authorities are also evaluating plans to expand pilot projects for companies wanting to commence full circulation of H-shares, Xinghai Fang, vice-chairman of China Securities Regulatory Commission, said yesterday at the World Internet Conference held in Wuzhen, Zhejiang province.

Fang delivered a speech on achieving mutual growth between the capital market and internet companies at the Financial Capital and Internet Technology Innovation Forum.

Making good use of both domestic and overseas markets to promote economic development has been a success in China, he said, adding that the CSRC has significantly accelerated the opening-up of the capital market in recent years, while domestic and overseas markets are closely linked.

The CSRC has also established good cooperation with securities regulatory agencies in neighboring markets such as Hong Kong and Singapore, which has created conditions for domestic enterprises to finance in overseas markets.

Some 24 companies received total financing of HKD148.3 billion (USD19 billion) from in the first 10 months of the year through initial public offerings of H-shares, and some 32 companies secured total refinancing of HKD194.3 billion through H-share issuance. Three pilot enterprises successfully completed full circulation of H-shares in the first half. The CSRC is now evaluating specific plans for expanding pilot enterprises to further amplify the financing support role of the market, Fang said.

China Europe International Exchange's first issuance of D-shares has opened a new path for domestic listed companies to use the European capital market, he added.

Fang emphasized the promotion of the establishment of a multi-level capital market system in the domestic market. 

 

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Keywords:   CSRC,Fang Xinghai,Shanghai-London Stock Connect,Hong Kong Stock Market